"We must be ready to dare all for our country. For history does not long entrust the care of freedom to the weak or the timid. We must acquire proficiency in defense and display stamina in purpose." - President Eisenhower, First Inaugural Address

Fighter

Wednesday, December 15, 2004

Wonder why the prices of fuel oil is likely to rise? Or as "This Week In Petroleum" puts it ""[T]he U.S. heating oil market may shape up to be more interesting than many thought as recently as a week or so ago."

U.S. distillate inventories failed to increase last week and Russian oil giant Yukos has filed for bankruptcy, combining to stoke supply concerns Wednesday as wintry weather starts to set in and lifting petroleum futures to their highest levels in two weeks.
"This is like triple bad news for the oil markets -- the supply data shows it could be a long winter, the much, much colder temperatures across the country and the bankruptcy of Yukos -- all are contributing to the rise in prices," said Kevin Kerr, president of Kerr Trading International.

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The underlying problem is lack of refining capacity- we need to build more capacity, but the profit margins are low and the cost, including the environmental aspects, is enormously high.

Update #2: Oh, yes, there is a shortage of shipping capacity, too, and that is part of the problem.

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EagleSpeak

About EagleSpeak

The main focus of this blog is maritime security. Other matters may appear. I am a retired attorney and a retired Navy Reserve Captain (Surface Warfare). Opinions expressed herein are my own. Sometimes I have the experience to back them up. Your opinions may vary. Don't panic. Feel free to disagree, that's what free speech is all about.
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Under the header: An F/A-18E of "Golden Warriors" VFA 87 lands on the flight deck of USS George H.W. Bush (CVN 77). (U.S. Navy photo by PO3 Christopher Gaines/Released)